SRC-DBM S.B. 405 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 405
76R4526  PB-DBy: Madla
Economic Development
2/22/1999
As Filed


DIGEST 

Currently, the Texas Insurance Code limits the amount of group life
insurance coverage that may be provided to Texas employees' spouses or
children under a group life insurance policy to an amount not  to exceed
one-half of the amount of insurance on the employee's life.  This limits
the options of Texas consumers  under group life insurance plans.  S.B. 405
provides that the amount of group life insurance coverage for spouses and
children may be limited to a percentage of the amount of insurance on the
life of the primary insured.  This bill would also allow a spouse or child
to become insured under a group life insurance policy if the employee is
eligible to be insured. 
 
PURPOSE

As proposed, S.B. 405 extends certain group life insurance coverage to
spouses and children. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 3.51-4A, Insurance Code,  as follows:

Art. 3.51-4A.  New heading:  EXTENSION OF GROUP LIFE INSURANCE
                         TO SPOUSES AND CHILDREN
 
Sec. 1.  Authorizes group life insurance coverage, rather than group term
life insurance, of each person eligible to be insured, to be extended to
cover spouses and certain children, provided the life insurance coverage of
the spouse or child  meets the authorized percentage limit of the primary
insured's amount. 

 Sec. 2.  Makes a conforming change.

 Sec. 3.  Makes conforming changes.

 Sec. 4.  Makes no change.

SECTION 2.  Makes application of this Act prospective to January 1, 2000.

SECTION  3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.